Health care advocates warn drug program change will erode safety net
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Indiana wants to discontinue Medicaid reimbursement for drugs purchased under a federal program designed to help hospitals afford to care for low-income patients.
Why it matters: The move will save the state money on Medicaid's rising costs, but advocates say it comes at the expense of those providers and the vulnerable populations they serve.
Driving the news: Indiana's Family and Social Services Administration (FSSA) posted notice that it intends to "fully discontinue Medicaid reimbursement for drugs purchased under the federal 340B Drug Pricing Program."
- Instead, the state would seek manufacturer rebates through the Medicaid Drug Rebate Program.
- It's estimated this will save the state around $60 million annually.
- This will ensure "alignment with federal requirements and supporting consistent, transparent reimbursement across the pharmacy benefit," according to the FSSA notice.
State of play: The 340B program requires pharmaceutical companies to sell discounted drugs to health care organizations that serve safety-net populations.
- It's been scrutinized at the state and federal levels to determine whether providers properly reinvest those savings for underserved patients.
- FSSA's proposed change would redirect savings to the state budget.
What they're saying: "If this proposal moves forward, it will fundamentally undermine Indiana's healthcare safety net," said Alan Witchey, president and CEO of Damien Center, in a press release.
- "340B allows organizations like ours to stretch resources and provide life-saving care to patients who otherwise would not be able to afford treatment."
- The Good Trouble Coalition, a grassroots group of Hoosier health care and public health advocates, has asked FSSA to withdraw the proposal.
The other side: FSSA did not respond to Axios' request for comment.
The latest: FSSA is taking public comment on the proposed change through March 27.
- If FSSA moves forward, it will take effect on July 1.